In the world of HR tech startups, there are Davids and Goliaths. Deel and Rippling are the Goliaths, both of whom have raised millions of dollars in venture capital. But Remofirst, which just secured $25 million in Series A funding, is proving to be a very worthy David.
Remofirst, an HR technology startup, states that it hires employees and contractors of its clients in more than 180 countries on their behalf without those companies having to establish local entities. This can save these companies time and money while helping them become more compliant, according to the CEO and co-founder. Nurasyl Serik.
Serving as an Employer of Record, Remofirst leverages that entity to hire workers on behalf of businesses and handles “everything that has to do with hiring an individual into a company,” Serik said. This includes managing payroll, taxes, employment, compliance and providing work equipment, as well as helping businesses come up with competitive compensation plans and offer health, dental and vision insurance.
Remofirst says its annual recurring revenue (ARR) has grown 10x since raising $14.1 million seed round in September 2022, although he declined to disclose hard revenue figures.
That revenue boost helped attract three term sheets in four weeks, according to Serik, allowing it to secure $25 million in Series A funding. European VC firm Octopus Ventures led the latest raise, which also included participation from existing supporters QED, Mouro Capital and Counterpart Ventures.
The company declined to disclose the valuation, noting only that it was a “strong bullish cycle.”
Although it has raised far less capital than competitor Deel (which raised more than $600 million and was the last worth $12 billion) and Rippling (which raised $500 million only in 2023), Remofirst is not deterred and believes it differentiates itself in a number of ways, one of which is that it is much more affordable, claims Serik.
Co-founders Nurasyl Serik and Volodymyr Fedoriv Image Credits: Remofirst
Early on, the company talked to potential customers and kept hearing that cost was an obstacle—that “there were good solutions out there, but they were cost-prohibitive.”
Remofirst says its fees start at $199 per month for an employee and $25/month for a contractor, which it claims is hundreds of dollars cheaper than competitors Deel and Rippling.
Deel’s website, for example, shows this fees start at $599 per month for employees and $49 per month for contractors.
How it can offer lower fees is Remofirst’s “secret sauce,” Serik said. “How we do it differently is all on the back end,” he said. “We also eliminate the need to spend months and tens of thousands of dollars setting up local entities to hire employees located in other countries.” Also, Remofirst COO and co-founder Volodymyr Fedoriv told TechCrunch that Remofirst aims to “ensure” compliance by working with legal “experts” within the country, while most competitors choose to create entities themselves.
While Remofirst primarily aims to serve small and medium-sized businesses, it can work with clients of all sizes, it claims. Today, it has thousands of clients, including Zocdoc, the World Health Organization and Mastercard.
“We see SMBs as an underserved segment of the market,” Serik told TechCrunch.
Octopus Ventures director Nick Sando told TechCrunch via email that his company believes “Remofirst offers a great level of service, at a significantly more affordable price. This means they can serve a wider range of companies than similar offerings.”
The company plans to use its new capital in part “significantly expanding” its presence in international markets, such as the United Kingdom.
On March 4, Deel announced that it is acquiring PaySpace, an Africa-based payroll and HR software and services company, in a deal that marks its largest acquisition to date. It also announced that it has crossed $500 million in ARR. Also on Tuesday, based in the UAE RemotePass announced that it had raised $5.5 million in Series A funding led by Istanbul-based 212 VC.
